Statement of Work- Defense Contract
Business Need
Mendoza Contracting seeks to provide a portable storage and communications solution to the
United States Army in fulfillment of the defense contract awarded by the Department of Defense
on September 1, 2015.
Product Scope Description
The work to be done is designing, developing, producing and delivering 200 units of a backpack
with in-built refrigerated pouch and radio module.
The product design is the first phase of the work and will involve visual simulations and
presentations of the product design for further modifications and ultimately approval for product
development. This phase should be completed within two months, concurrent to the first
milestone payment on October 30, 2015 and should consume not more than a tenth of the total
program budget.
The initial program review comes 16 days after the proposed completion of the product design
phase and offers a chance to showcase designs with the aim of convincing on follow on contracts
for future additional backpacks and also get feedback on additional inputs for the development
phase.
The development phase follows and involves putting the visual designs into a workable
prototype serving the storage, communications and portability functionality of the backpack,
sought by the client. Pre-production testing will also be done to minimize chances of final
product defects. The phase should be completed by January 31, 2016 to allow ample time for
production and should consume not more than two tenths of the budget.
The production phase is the most critical phase and as such is allocated the most resources in
terms of time and money, that is five months of production of the first 100 units of the product (a
production rate of 1.5 days per unit), and allocated three tenths of the budget. This leaves two
months before first delivery in which further checks will be done and the company will
commence with the production of the second batch of 50 units.
The subsequent program review is on May 16, 2016 towards the end of the main production
phase and offers a chance to demonstrate progress towards successful performance of the
contract obligations.
First delivery is on September 1, 2016 and will be achieved due to efficiencies planned for and
executed in the preceding phases.
The second delivery is on December 1, 2016 and will be met especially considering that the
company commenced second batch production two months before first delivery and expects to
reduce the production rate to 1 day per unit as a result of the learning and experience effect.
The second milestone payment comes in between the second delivery and the last delivery and
could be used to bridge any budget gaps if resources have been exhausted in terms of producing
the final batch of 50 units, whose delivery is on March 1, 2017.
After the final delivery comes the final milestone payment (3 months later) on May 30, 2017.
Work Breakdown Structure
Start DateEnd Date Description
1/9/20151/9/2015Award of contract
30/10/201
2/9/20155Product design + pre-production testing
30/10/201 30/10/201
55First payment milestone
16/11/201 16/11/201
55Initial program review
17/11/201 31/01/201
56Development phase
30/06/201Production phase + checks + second batch
1/2/2016 6 commencement
16/05/201 16/05/201
66Subsequent program review
1/9/20161/9/2016First delivery
20/11/201
2/9/20166Second batch production continues
1/12/20161/12/2016Second delivery
20/02/201
2/12/20167Third batch production
30/01/201 30/01/201
77Second milestone payment
1/3/20171/3/2017Last delivery
30/05/201 30/05/201
77Final milestone payment
